Air Force R&D contract for human performance research awarded to Battelle Memorial Institute for over $23.4M

Contract Overview

Contract Amount: $23,495,575 ($23.5M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2021-08-23

End Date: 2023-12-31

Contract Duration: 860 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HUMAN PERFORMANCE RESEARCH AND ENGINEERING FOR THE AIR FORCE RESEARCH LABORATORY'S 711TH HUMAN PERFORMANCE WING, HUMAN EFFECTIVENESS DIRECTORATE, WARFIGHTER READINESS AND INTERACTIONS DIVISION

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to BATTELLE MEMORIAL INSTITUTE for work described as: HUMAN PERFORMANCE RESEARCH AND ENGINEERING FOR THE AIR FORCE RESEARCH LABORATORY'S 711TH HUMAN PERFORMANCE WING, HUMAN EFFECTIVENESS DIRECTORATE, WARFIGHTER READINESS AND INTERACTIONS DIVISION Key points: 1. Contract focuses on enhancing warfighter readiness and interactions through advanced human performance research. 2. The awardee, Battelle Memorial Institute, has a significant track record in research and development. 3. This contract falls under the broad category of R&D in physical, engineering, and life sciences. 4. The duration of the contract is approximately 860 days, indicating a medium-term research effort. 5. The contract type is Cost Plus Fixed Fee, which allows for flexibility in research but requires careful cost oversight. 6. The geographic location of performance is Ohio, a state with a notable presence in defense contracting.

Value Assessment

Rating: good

The contract value of over $23.4 million for a period of approximately two years for specialized human performance research appears reasonable. Benchmarking against similar R&D contracts in defense requires detailed analysis of scope and deliverables, but the fixed fee component suggests a defined profit margin. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain aligned with the research objectives and do not escalate unnecessarily.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair pricing and innovative solutions. The fact that it was competed openly suggests that the government sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that government funds are used efficiently by selecting the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the U.S. Air Force warfighters, who will benefit from improved readiness and effectiveness through research findings. The services delivered include advanced research and engineering in human performance, aiming to optimize human capabilities in operational environments. The geographic impact is primarily within Ohio, where the research will be conducted, potentially creating local economic benefits. Workforce implications may include employment for researchers, engineers, and support staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Scope creep could increase costs and extend timelines if research objectives are not clearly defined and managed.
Dependence on a single contractor for specialized research may limit future competitive options if knowledge transfer is not managed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on human performance research directly supports warfighter effectiveness and safety.
Battelle Memorial Institute is a reputable research organization with a history of successful government contracts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other contracts for similar specialized research within the Department of Defense, particularly those focused on human factors and warfighter performance.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, Battelle Memorial Institute, as a large research organization, may engage small businesses as subcontractors for specialized services or supplies, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Air Force Research Laboratory's contracting and program management offices. Accountability measures would be tied to performance metrics and milestones outlined in the contract. Transparency is facilitated through contract award databases, though detailed research findings are often classified or proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory (AFRL) Contracts
Human Performance Research Programs
Warfighter Readiness Initiatives
Defense Research and Development Contracts
Battelle Memorial Institute Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Research and Development contracts can have inherent uncertainties in scope and outcome.
Potential for contractor performance issues if not adequately monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to BATTELLE MEMORIAL INSTITUTE. HUMAN PERFORMANCE RESEARCH AND ENGINEERING FOR THE AIR FORCE RESEARCH LABORATORY'S 711TH HUMAN PERFORMANCE WING, HUMAN EFFECTIVENESS DIRECTORATE, WARFIGHTER READINESS AND INTERACTIONS DIVISION

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2021-08-23. End: 2023-12-31.

What is Battelle Memorial Institute's track record with similar Air Force R&D contracts?

Battelle Memorial Institute has a substantial history of performing research and development contracts for the Department of Defense, including the Air Force. They are known for their work in various scientific and engineering disciplines. Analyzing their past performance on contracts with similar scope, such as those involving human factors, simulation, or advanced materials for defense applications, would provide context. Their ability to manage Cost Plus Fixed Fee contracts effectively, deliver on technical milestones, and adhere to budget constraints in previous engagements are key indicators of their capability for this specific award. Publicly available contract databases often show award history, but detailed performance reviews are typically internal to the government.

How does the value of this contract compare to other human performance research efforts within the DoD?

The contract value of over $23.4 million for approximately two years of research is a significant investment. To benchmark this value, one would need to compare it against other contracts awarded by agencies like the Air Force Research Laboratory, DARPA, or ONR for similar human performance research, human-machine teaming, or warfighter readiness initiatives. Factors such as the specific research objectives, the complexity of the required analysis, the duration, and the level of innovation sought would influence the price. Without access to a comprehensive database of comparable R&D contracts with detailed scope and deliverables, a precise value comparison is challenging. However, the amount suggests a substantial and critical research undertaking.

What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where exact costs are uncertain, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost. This can lead to cost overruns if not managed diligently. Contractors may also face challenges in accurately estimating costs upfront. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin or even lead to a loss if actual expenses significantly exceed projections. Effective oversight, clear performance metrics, and robust cost tracking are crucial to mitigate these risks for both parties.

How effective is full and open competition in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including specialized R&D. It allows a wide range of qualified contractors to compete, fostering innovation and driving down prices through market forces. This process encourages contractors to offer their best technical solutions and most competitive pricing to win the award. For specialized R&D, it ensures that the government can identify and select the contractor with the most relevant expertise and the most efficient approach to achieving the research objectives. While the selection process can be more complex than sole-source awards, the long-term benefits in terms of cost savings and quality are typically substantial.

What are the historical spending patterns for human performance research within the Air Force?

Historical spending patterns for human performance research within the Air Force have generally shown a consistent investment, particularly as the complexity of warfare and technology increases. The Air Force Research Laboratory (AFRL) and its various directorates, such as the 711th Human Performance Wing, are central to these expenditures. Spending fluctuates based on strategic priorities, technological advancements, and specific program needs. Over the years, there has been a growing emphasis on understanding the human element in complex systems, including cognitive performance, human-machine interfaces, and physiological resilience. Analyzing past budgets and contract awards for similar research areas would reveal trends in funding levels and the types of research prioritized by the Air Force.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, COLUMBUS, OH, 43201

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,649,839

Exercised Options: $89,649,839

Current Obligation: $23,495,575

Actual Outlays: $3,545,304

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $6,122,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0005

IDV Type: IDC

Timeline